The Rotomac Loan Fraud
A pen maker borrowed nearly ₹2,919 crore from seven public banks. When lenders feared he might flee like Nirav Modi, the CBI moved first and arrested him before he could.
The Promise
“Credit facilities extended to Rotomac Global Pvt. Ltd. will be repaid according to sanctioned terms.”
— Rotomac Global Pvt. Ltd., under owner Vikram Kothari, Kanpur-based pen and stationery manufacturer; borrower from a seven-bank consortium · 1 January 2008
Bank of Baroda, a member of the lending consortium led by Bank of India, approached the CBI fearing Kothari might flee the country as Nirav Modi and Mehul Choksi had.
The Standard
Loan funds used for their disclosed manufacturing purpose and repaid according to sanctioned terms, with the borrower remaining available to Indian investigators.
Standard multi-bank consortium lending covenants.
In force from 1 January 2008
The Reality
The CBI arrested Vikram Kothari and his son Rahul Kothari on 22 February 2018, booking them over a loan default reported at ₹3,695 crore including accrued interest, against a principal of roughly ₹2,919 crore owed across seven banks: Bank of India (₹754.77 cr), Indian Overseas Bank (₹771.07 cr), Bank of Baroda (₹456.63 cr), Union Bank of India (₹458.95 cr), Allahabad Bank (₹330.68 cr), Oriental Bank of Commerce (₹97.47 cr), and Bank of Maharashtra (₹49.82 cr).
As of 22 February 2018
The Gap
Bars share a single zero-based scale. No axis truncation is used to exaggerate or minimize the gap between the two figures.
Timeline
- AnnouncementBorrowing begins
Rotomac begins availing credit facilities from the seven-bank consortium.
- StatusConsortium approaches CBI
Bank of Baroda, fearing Kothari may flee, seeks CBI intervention.
- StatusKothari and son arrested
The CBI arrests Vikram and Rahul Kothari over the ₹3,695 crore default.
Legal Status
This is a stub entry. Both father and son were arrested in 2018; this investigation has not yet traced the case to a bail decision or trial verdict.
Arrested by the CBI, 22 February 2018. This investigation has not confirmed a subsequent bail decision or trial verdict.
Arrested alongside his father, 22 February 2018. No confirmed subsequent status.
Verdict
Preliminary verdict, pending fuller research: the default amount and both arrests are well documented from 2018 reporting. This investigation has not established the trial's current status nearly a decade later.
This entry was added to establish the case's place in the site's timeline and its headline facts, drawn primarily from 2018 reporting. It has not yet received the same depth of research as the site's fully developed cases.
What remains incomplete
- This is a stub entry. The trial's current status, bail history, and any verdict have not been researched.
- No confirmed recovery figure for the seven-bank consortium was found in the sources reviewed.
- It is not established whether other Kothari family members named in early reporting remain accused.
Sources
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